Case No. UKUT-24-(LC)

), in the following terms:“(1) The rateable value of a non-domestic hereditament none of which consists of domestic property and none of which is exempt from local non domestic rating shall be taken to be an amount equal to the rent at which it is estimated the hereditament might reasonably be expected to let from year to year on these three assumptions—.(a) the first assumption is that the tenancy begins on the day by reference to which the determination is to be made;(b) the second assumption is that immediately before the tenancy begins the hereditament is in a state of reasonable repair, but excluding from this assumption any repairs which a reasonable landlord would consider uneconomic;(c) the third assumption is that the tenant undertakes to pay all usual tenant’s rates and taxes and to bear the cost of the repairs and insurance and the other expenses (if any) necessary to maintain the hereditament in a state to command the rent mentioned above.”52.The basic rating hypothesis therefore requires the identification of an amount equal to the rent at which it is estimated that the hereditament might reasonably be expected to be let, on an annual letting, on the basis of the three assumptions set out in sub-paragraphs (a), (b) and (c) of paragraph 2(1). For present purposes the key assumption is the repairing assumption in sub-paragraph (b), which requires the assumption that, immediately before the hypothetical tenancy begins, the hereditament is in a reasonable state of repair. Excluded from this assumption are any repair which a reasonable landlord would consider uneconomic.53.In the case of an alteration in the list, such as that sought by the proposal served upon the Respondent in the present case, which has given rise to this appeal, paragraph 2(6) of Schedule 6 applies, which provides as follows:“(6) Where the rateable value is determined with a view to making an alteration to a list which has been compiled (whether or not it is still in force) the matters mentioned in sub-paragraph (7) below shall be taken to be as they are assumed to be on the material day.”54.The matters to be taken into account on the material day are set out in paragraph 2(7) of Schedule 6, in the following terms:“(7) The matters are—(a) matters affecting the physical state or physical enjoyment of the hereditament,(b) the mode or category of occupation of the hereditament,(c) the quantity of minerals or other substances in or extracted from the hereditament,(cc) the quantity of refuse or waste material which is brought onto and permanently deposited on the hereditament,(d) matters affecting the physical state of the locality in which the hereditament is situated or which, though not affecting the physical state of the locality, are nonetheless physically manifest there, and(e) the use or occupation of other premises situated in the locality of the hereditament.”55.In the present case it is the matter referred to in sub-paragraph (b) of paragraph 2(7) which is directly in issue; namely the MCO of the hereditament (the Power Station) on the Material Day.